45 / 98
Rm
2018
2017
Revenue
86 370
81 278
Direct expenses
(33 669)
(30 483)
Staff expenses
(5 509)
(5 472)
Publicity expenses
(1 913)
(1 971)
Other operating expenses
(12 441)
(12 193)
Share-based payment charges
(130)
(75)
Depreciation and amortisation
(9 959)
(9 251)
Impairment losses
(4)
(84)
Net profit from associate and joint venture
1 507
1
Operating profit
24 252
21 750
Profit on sale of associate
734
–
Finance income
703
777
Finance costs
(2 811)
(2 818)
Net loss on remeasurement and disposal
of financial instruments
(785)
(481)
Profit before tax
22 093
19 228
Taxation
(6 531)
(6 102)
Net profit
15 562
13 126
Attributable to:
Equity shareholders
15 344
13 418
Non-controlling interests
218
(292)
15 562
13 126
Cents
2018
2017
Basic earnings per share
947
915
Diluted earnings per share
919
886
Condensed consolidated income statement
for the year ended 31 March
Revenue increased 6.3% (7.8%*), as a result of higher
contributions from data revenue and Enterprise services
and boosted by equipment sales.
Profit on sale of associate investment in Helios Towers
Tanzania (HTT).
Net finance costs of R2.1 billion has remained relatively
consistent as average gross debt in the year was
relatively flat and cost of debt was flat at 8.3%.
FEC mark-to-market revaluation losses and
remeasurement of foreign cash balances.
Taxation is 7% higher driven by increased profitability.
Non-controlling interest allocation increased mainly
due to a strong performance in Tanzania boosted by
HTT sale, a strong performance in Mozambique and
Lesotho, and the new contribution from Safaricom.
Basic earnings per share increased 3.5% supported
by a strong contribution from operating profit and the
contribution from Safaricom.
R1.5 billion net profit from Safaricom for
eight months.
Total expenses increased 6.8% as a result of higher
equipment costs, costs related to our roaming
agreement with Rain and increases in wholesale transit
expenses (a new lower margin business area). Included
in other operating expenses is a foreign exchange
gain of R56 million (2017: foreign exchanges loss of
R331 million).
41
Our business
Our performance
Our governance
Administration